SYSPRO ERP solutions for the Machinery and Equipment Industry

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1 SYSPRO ERP solutions for the

2 Ensuring a well equipped business SYSPRO's powerful inspection, serial tracking and lot traceability functionality aid in the identification and tracking of the source of defects, thereby enabling the implementation of kaizen initiatives towards the principle of 'Quality at the source'. The queries and reports in Work in Progress enable you to quickly assess the statuses, inventories and costs associated with work in progress, and provide metrics on utilization, efficiency, scrap and rework, while customer and supplier delivery performance metrics are provided by SYSPRO's powerful sales order and purchase order functionality. SYSPRO's flexible integrated features and bestpractice focus give you single-point visibility and control, providing support for the implementation of your LEAN initiatives. v SYSPRO for Machinery and Equipment addresses your business holistically, implementing solutions to support lean manufacturing and cost efficiencies, while allowing you to respond to global market fluctuations. SYSPRO offers easy integration with computer aided design and manufacturing systems (CAD and CAM), and permits full traceability through all transactions, reducing inventories and improving capacity utilization. SYSPRO's engineering change control module augments or eliminates the paper trail that traditionally accompanies changes to product design data, while our Factory Scheduling system facilitates the management of the supply chain, from planning and execution to the identification and remediation of potential problems. In this Asset intensive industry, the planning and control of capex expenditure is key, SYSPRO Asset Register provides all the controls necessary to manage ones Assets, their depreciation and the Capex budgeting and spend. About Lean Manufacturing Practices From enabling the identification and tracking of non-value adding activities inherent in your current operational processes, to the automation of manual processes, SYSPRO's powerful functionality provides you with the tools to implement your LEAN initiatives. Its integrated nature and ease-of-use facilitates the effortless extraction of financial and operational information required for Value Stream Mapping (VSM). SYSPRO's Inventory module is a synchronized hub providing a consolidated view of all stock locations and those activities that impact inventory optimization and customer service levels, as well as the end-to-end elements of costs and lead times. Features such as Pareto and obsolescence analysis can assist in identifying those products that are suitable for VSM focus, while SYSPRO modules such as Engineering Change Control, Bills of Material, Work-in Progress and Factory Scheduling facilitate the evaluation of targets for kaizen programs, such as reduction in design and manufacturing costs, cycle times, queues and setups. SYSPRO's Inventory and Bills of Material modules enable the modelling of the LEAN techniques of batch size and setup reduction on costs, lead time and inventory. SYSPRO's Factory Scheduling provides graphical tools to assist you in optimizing your scheduling and sequencing processes, to reduce setup and overall lead time, and improve manufacturing flexibility and sale-to-customer flow. This, along with the inventory optimization and production planning features, enable you to refine the pace of production to match the pace of sales. Furthermore, features such as sales order / job / purchase order linking facilitate the electronic implementation of true pull supply chain processes where appropriate. SYSPRO's Document Flow Manager and SYSPRO e.net solutions enable you, not only to automate resource and time-intensive processes such as order processing, but also to handle increased volumes from global customers by providing order taking and acknowledgement on a 24/7 basis, thereby improving lead time and freeing up staff to perform other value-adding tasks. Furthermore, SYSPRO's XML-aware solutions enable versionindependent integration with best-of-breed shop floor monitoring and control systems. The system's sophisticated reporting and analytics tools enable user-defined reports and queries, while its powerful customization functionality enables the creation of efficient workflows to implement business rules and standardize business processes. Additionally, the Office Automation and Messaging module enables the automatic raising of alerts, triggers and events, based on user-defined criteria, thereby aiding prompt problem solving and process improvement. Control product design changes Constant innovation is one of the key factors to remaining competitive and on-going research and development to design new and better products is integral to the industry. Your ability to design new products and modify existing designs, as well as improve timeto-market is critical to remaining competitive and profitable. SYSPRO provides tools to streamline and track the introduction of new product designs and amendments to existing designs, along with relevant costings. SYSPRO's Engineering Change Control (ECC) enables you to apply strict control over your design-to-market processes by providing an integrated rules-based electronic workflow system with full version control, security and auditable history. 1 SYSPRO ERP solutions for the SYSPRO ERP solutions for the 2

3 ECC gives you the tools to record and track new and modified product design and process changes, assess the impact of these changes on costs and associated data, and control the change routing and approval processes. ECC's queries, audit trail, history and archive facilities, give you quick on-line access to details of prior product versions, as well as the option of reverting to the production of a prior product version if required. In addition, the facility to attach copies of product design drawings to version and release levels provides access to visual details of revisions. The Where-used Query facility enables you to identify all items affected by the raising of an Engineering Change order for all routes identified as being under Engineering Change Control. In addition, SYSPRO provides a 'replace component where-used' facility that enables the quick replacement of one item with a valid substitute item, thereby streamlining design changes. SYSPRO's ECC, Bill of Materials, Work-in-Progress and Factory Documentation modules enable you to implement controls to ensure that your products are manufactured under consistent processes, to the correct designs and specifications. Singlelevel, multi-level, co and by-product bills are all catered for and flexible bill definitions accommodate complex component and sub-assembly requirements. v Maintain accurate job costs In 'to-order', as well as project and service environments, job cost accuracy is essential in attaining correct pricing and profitability, as well as to assess the reliability of the quoting process, while in standard costing environments, it is essential for tracking the validity of current standard costs. For 'to-order' environments, SYSPRO's Quotations module enables detailed estimates based on all aspects of the job (or jobs) and the automatic creation of jobs, purchase orders and sales orders based on approved quotes. This ensures the integrity of the quoted and margin information throughout the system. For project and service environments, this same functionality is available with the added benefits of hierarchical analysis of costs and margins per head and section. SYSPRO's fully integrated solution enables the capture, tracking and analyzing of job and product costs and profitability in real-time. Details of expected versus actual costs for material and scrap, internal and external labor, fixed and overhead costs per job, or group of jobs, is available through SYSPRO's powerful querying and reporting features. This enables the identification of exceptions and problems as they occur, such as areas of high cost expenditure, production scrap and rework, and problems in the quoting process. Furthermore, for those businesses wishing to take advantage of government and private enterprise grant programs, detailed R&D job data is easily extracted for regulatory reporting requirements. With SYSPRO's visibility to product cost details and profit margins, including for co and by-products, you can evaluate job cost performance, margin analysis and pricing with confidence. v Optimizing production capacity and increasing manufacturing efficiency Increasing manufacturing efficiency means getting the right balance between demand and supply, while optimizing capacity, improving throughput, and reducing waste and variable costs. SYSPRO provides interactive decision support tools that give you visibility and control over all inputs and outputs. The Material Requirements Planning system gives you an integrated picture of your demand and supply, as well as your available capacity, enabling you to model what-if scenarios to produce viable replenishment and production plans. SYSPRO's Factory Scheduling assists you in maintaining accurate and up-to-date production schedules that take account of the complexities of your factory. This enables better co-ordination between work centers, increases productivity, reduces work in progress and achieves better customer service levels. Material and labor tracking, as well as cost, scrap and utilization management is facilitated through SYSPRO's Work in Progress module, which enables you to track in-process production at every stage and identify problems as they occur. v Reducing lead times One of the key contributors to maintaining a competitive advantage in the global market is the ability to deliver quality products to customers within their expected delivery date, in a shorter time than your competitors, and within your cost constraints. To do this, you need to be able to analyze lead time constituents and non-value-add activities, from order taking to delivery, so you can identify and eliminate waste. SYSPRO's integrated nature gives you complete visibility across the entire supply chain, enabling the co-ordination of activities, while its powerful tools help you to monitor and improve lead time performance. SYSPRO e.net solutions and import functions facilitate improved electronic collaboration with your customers and suppliers, thereby reducing the time and margin for error for activities such as order processing and the creation of customer-specified designs. Supplier performance data provides you with comparison of original due date to receipt date for purchased items, while the capture of customer request date at order entry time enables reporting on customer delivery performance by customer, by order line. 3 SYSPRO ERP solutions for the SYSPRO ERP solutions for the 4

4 For engineering or build-to-order items, SYSPRO's Quotations module enables the capture of all build details and costs, thereby enabling you to calculate realistic delivery dates. It also facilitates the quick conversion of an accepted quote into the relevant details in Work in Progress, Sales Orders and Purchase Orders. This reduces capture time and errors, as well as the time taken to raise the paperwork. For stocked items, SYSPRO enables the capture of standard purchasing lead time for components, as well as the automatic calculation of manufacturing and cumulative lead times for manufactured product based on the elements of operation times in the Bill of Materials and Quotations modules. At the design stage, the Engineering Change Control module helps you streamline and control the product design process, helping to reduce the time from concept to market. Functionality that answers your business needs Advanced scheduler The SYSPRO Advanced scheduler allows you to generate schedules of a high quality through the use of advanced scheduling rules and by considering the availability of components and raw materials. Advanced trial kitting Advanced trial kitting provides you with a simple method of calculating date-driven material requirements when a full material requirements planning run is not needed. You use it to determine date-specific material requirements for which supplies must be raised, in order to satisfy date-driven demand for a range of manufactured products from various demand sources. A simple review of the calculated results enables seamless creation of supply orders, whether they be works orders, purchase orders or warehouse transfers. Automated document flow Automated document flow provides a powerful way of automating your business processes and forms a key part of facilitating Material and distribution requirements planning helps you identify what you need and when you need it based on standard lead times dynamically adjusted for batch size for selected sources of demand and their requirement dates. Powerful queries provide pegging and time fence information to enable effective decision-making. Work in Progress job data provides job and operation planned and actual start and finish dates, which enables you to identify bottlenecks in production. In addition, SYSPRO Factory Scheduling provides excellent visibility to your production scheduling activities, facilitating improved use of manufacturing resources. v collaborative commerce, by allowing SYSPRO customers to exchange documents (e.g. sales and purchase orders). Incoming documents (defined using XML data) can be tracked and automatically posted into SYSPRO. Documents can be transformed from one format to another using either the Document Flow Manager itself, or more sophisticated products such as BizTalk. Backflushing Within, SYSPRO, backflushing enables you to record the manufacture of items without having to create works orders. This is particularly relevant in situations where the production runs are short and the benefits derived from creating a works order to track the activity on the shop floor do not justify the cost of processing all the data normally required for a works order. Backflushing enables you to receipt a finished product into stock and simultaneously post the relevant labor transactions and deplete inventory of production materials based on the bill of materials of the finished product. The system uses the manufactured item's bill of materials to determine the material and labor charges to be included. Bill of material archiving When a Bill of material is changed and accepted, using the engineering change control facility, the previous revision/release of the bill can be archived automatically or manually, using the standard SYSPRO archiving facility. This archived bill can be accessed at any stage using the Structure and Routine program. Blanket purchase orders In SYSPRO, blanket purchase orders allow you to create, maintain and use contract purchase orders as well as monitor purchase order receipts against a supplier's contract. The purpose of these contracts is to allow a fixed price to be recorded for a specified period and/ or volume, plus an agreed delivery schedule. With extensive querying and reporting capabilities, you can centrally manage anticipated deliveries and review supplier delivery performance. SYSPRO's Business-to-Business trading and e- commerce solution contract details can be exported into XML format for electronic exchange with trading partners. Capacity planning Capacity planning helps you determine the resources required to meet the prior plan and the method needed to make the capacity available. It takes place at each level of the priority planning process. Production planning, master production scheduling, and material requirements planning determine priorities: what is wanted and when. These priority plans cannot be implemented, however, unless the firm has sufficient capacity to fulfill the demand. Capacity planning, thus links the various production priority schedules to manufacturing resources Change control Change control facilitates the revision to a drawing or design released by the engineering department. SYSPRO's Engineering Change Control module helps you control the changes to modify or correct a part. Cumulative lead time Cumulative lead time represents the longest path in the bill of materials, including raw material purchasing and manufacturing lead time. It is established by reviewing the lead time for each bill of material path below the item; whichever path adds up to the greatest number defines the cumulative lead time. Dynamic elapsed time Dynamically calculated elapsed times mean that if the batch size changes then the elapsed time is amended automatically. This enables the Requirements Calculation and Forward Finite Scheduling programs to take account of this when calculating suggested job start and delivery dates. The Lead Time Calculation program also recalculates dynamic elapsed time. Factory scheduling Finite Scheduler The Finite Scheduler is a sophisticated finite capacity scheduler with the ability to consider multiple constraints. This means that you can define as many resources (constraints) as you like for each operation. Secondary resources can have either finite or infinite capacity. Secondary resource groups can be used to define, for example, operator skill teams. Inventory optimization The reason for holding inventory is to provide service to customers whilst dealing with uncertainties in demand and supply. Inventory optimization allows the drivers of inventory to become visible and measurable, providing an understanding of what can be changed and how easily. It quantifies 5 SYSPRO ERP solutions for the SYSPRO ERP solutions for the 6

5 the relationship between the different drivers so that the effect of change can be modeled and the best strategies for optimization identified. On the demand side, the forecast is a major driver of inventory, coupled to the service level that is targeted for the item. The higher the service level and the less accurate the forecast, the more inventory is required to meet the required service level. On the supply side, inventory is driven by two major influences - the frequency of the replenishment order and the length and reliability of the lead time. Longer and more variable lead times mean more uncertainty and hence more inventory to balance the risk. Inventory optimization uses the drivers of inventory to calculate time-phased safety stock at the SKU level, which can then be used to project inventory and cash flow into the future. IO can reduce investment and subsequently ROI, while improving service levels which often leads to improved turnover. Job actuals versus estimates This provides the tools for you to compare, at a glance, the actual costs for a job against the expected costs, thereby enabling you to identify and investigate cost variances as they occur. For a job for a made-in product, the basis of the expected costs is derived from the materials and operations defined against the bill of material (or estimate, in the case of quotations). Work in Progress queries and reports enable you to view the comparisons at job (labor and material totals), material allocation and labor allocation level. The Job Cost Recalculation program allows you to recalculate the job expected cost totals for labor and material, if you add allocations after the job has been created, thereby providing a more realistic comparison. Manufacturing costing Within SYSPRO, the cost of any stock item is stored as the item's inventory warehouse cost, using either the average, standard, FIFO, LIFO or last costing method. The material, labor, subcontract, fixed overhead and variable overhead costs of a manufactured stock item are stored against a manufactured item's bill of material and these costs are rolled up through all levels of the bill via the Cost Implosion program, to provide the item's expected manufacturing cost. Within SYSPRO's Work in Progress module, the estimated costs of a job are calculated from the manufactured item's bill of material cost, while the actual costs of the job are recorded as you issue material and labor to the job. When a job is complete, you can receipt it based on expected or actual costs and post any variances to the relevant ledger codes. You can opt to enter material costs for the lowest level stock items manually against each bill, or transfer these costs automatically from the inventory warehouse costs. The Cost Implosion calculations are performed starting from the lowest level of the bill of material and take into account the various elements of production time, labor rates, productive units, economic batch quantities and scrap quantities and percentages. Within the Bill of Materials module, you can also perform what-if costing, by changing elements of the bill of material costs and performing a what-if roll-up. Within the Quotations module, estimates are held as bills of material for non-stocked items and you can perform various rollups to establish the cost of the made-in item. Manufacturing lead time Manufacturing lead time represents the time it takes to manufacture a made-in product (excluding non-working days) assuming all the raw materials are available. It is the longest manufacturing time, established from the sum of the elapsed time and inter-operation movement time for all levels of the bill. Manufacturing lead time is an element of cumulative lead time. For make-to-order products, it is the length of time between the release of an order to the production process and shipment to the final customer. For make-to-stock products, it is the length of time between the release of an order to the production process and receipt into inventory. Material requirements planning Material requirements planning assists you in planning and creating realistic production, purchasing and supply transfer schedules, and maintaining optimal stock holdings in a multi-warehouse environment. It nets-off supply against demand and calculate future material positions, suggesting changes or new manufacturing, purchasing and transfer actions to satisfy the demand. Order policies by warehouse Within SYSPRO, order policies refer to the rules that SYSPRO applies when calculating suggested replenishment orders for purchased or manufactured stock items-you use these rules to apply the order policies that your company has formulated. SYSPRO order policies are extremely flexible and enable you to cater for the possibility that different warehouses in your organization may have different replenishment rules for the same stock code -for example: Branch warehouses with different local costing and storage issues. To this end you can configure order policies at warehouse level, specifying such criteria as major and minor order multiples, and minimum and maximum order quantities. Replace component where-used The Replace Where-used function enables you to replace a redundant component stock code throughout all Bills with a valid substitute. Sales order to job link When a job is created as a direct result of a Customer order, a link is created between the sales order line and the job to enable the sales order line to automatically be released on job completion and to prevent inadvertent changes to the sales order line. Serial tracking Serial tracking is designed to provide full tracking at transactional level for those items that have serial numbers assigned to them and that may carry a warranty. The serial numbers can either be unique per individual item or the same for a batch of items. Traceability SYSPRO's traceability enables you to maximize quality control through the tracking and replacement of any defective materials and manage product recalls efficiently and effectively. Companies in highly regulated industries for safety or health compliance such as electronics, aeronautics, defense, food, pharmaceutical, medical devices and motor vehicles would typically benefit this level of traceability. If facilitates tracking material and movement through the receiving, manufacturing, assembly, inspection, stocking and final dispatch stages. Trial loading Trial loading enables you to load operations held against the job onto the productive capacity of a work center, according to the specified date calculation method, to establish if there is sufficient capacity to manufacture the job, within the specified time frame. What-if costing What-if costing is used to simulate the consequence of changing your individual bought out items costs, material costs and Labor costs without affecting existing costs held on the system. Labor costs are changed by altering the what-if work center rate indicator held against each operation. Once what-if costs have been entered the BOM Cost Implosion program can be used to re-cost stock items from raw material level through to the finished product. Work in progress inspection The WIP Inspection programs enable you to inspect made-in stock items before accepting them into stock. The items are received from the job, into inspection and can then either be returned for rework, scrapped or accepted into stock. Work in progress tracking report Work in Progress tracking enables you to track the progress of a job until it is complete, by providing a list of complete and outstanding operations per job. v 7 SYSPRO ERP solutions for the SYSPRO ERP solutions for the 8

6 Leveraged solutions Assets Register SYSPRO Assets Register provides up-to-date, realtime information regarding the value of all assets within the organization by keeping a record of depreciation and current asset values and a facility that evaluates the remaining worth by tracking income and expenditures derived from assets. Bill of Materials SYSPRO Bill of Materials facilitates an accurate expected cost against which to track actual production costs. The complete bill forms the basis for material and capacity planning, shop floor control and costing. You can create and maintain a model of your manufactured or assembled products as well as generate what-if costing scenarios. Contact Management SYSPRO Contact Management allows you to define and manage a rich set of information about the people with whom you do business as well as between individuals within your organization. This applies not only to traditional SYSPRO customers and suppliers, but also to other business relationships such as potential customers (prospects), consultants, competitors, etc. Visibility of the communications (or activities) that occur between the touch-points of organizations facilitates proactive intervention by management, improves relationships and eliminates duplication of efforts. Inventory SYSPRO Inventory enables effective customer servicing and improved profits by providing superior inventory that optimizes stocking levels. It forms the core of the accounting, distribution and manufacturing facilities and is designed to integrate with all the major functions of the systems and to provide flexible reporting on inventory holdings. All movements against inventory items are recorded and can be reported on. Features include multiple warehouses and bin numbers, multiple costing methods, a full Kardex facility, a stock take system and extensive reporting. Landed Cost Tracking SYSPRO Landed Cost Tracking is designed to assist you in tracking imported goods, estimating arrival times and establishing the overall cost of imported goods. Product Configurator SYSPRO Product Configurator offers multiple configuration options to customers in a controlled, cost-effective and user-friendly manner in order to maximize customer service and operational efficiency. It enables manufacturers to differentiate their product offerings through the customization of product to meet customer specifications and can help reduce configuration errors, while reducing the involvement of experts in routine transactions. Projects and Contracts SYSPRO Projects and Contracts facilitates accurate profit reporting for long-term projects that require analysis of costs and revenues at each section or level with the contract or project. Purchase orders, job activity, sales orders and invoicing for jobs attached to a project update the contract or project in real time. Query screens and reports show up-to-date actual and committed costs, realized and projected profit at any level of the job hierarchy. Purchase Orders SYSPRO Purchase Orders is an integral part of the distribution and manufacturing functions and enables the monitoring of the quality, accuracy, lead times and costs of purchases while providing comprehensive supplier performance analysis. Quotations SYSPRO Quotations provides the flexibility of producing quotes with multiple offers for stocked and/or customized (estimated) items for existing or prospective customers. The power of this system becomes evident when one or more stock items must be specially made. In these cases a supporting estimate can be created. This, in turn, may have one or more special parts, which again can be supported by an estimate, and so on. This process can be extended to fourteen levels, which are then rolled up to complete the quotation s top level costing. Requirements Planning SYSPRO Requirements Planning uses projected demand and supply to assist you in planning and creating realistic production, purchasing and supply transfer schedules. It also identifies capacity constraints, and maintains optimal stock holdings in a multi-site and multi-warehouse environment. SYSPRO Factory Scheduling SYSPRO Factory Scheduling gives you the ability to schedule the production in your factory to a detailed level considering the capacity constraints in your environment. You have the option of three products, ranging from the simple Graphical Planning Board to the very sophisticated Advanced Scheduler; the latter being classified as an APS (Advanced Planning and Scheduling) system. Work in Progress SYSPRO Work in Progress enables you to minimize job costs through the efficient utilization of production resources. It allows you to accurately control costs of work orders currently in progress by tracking the material, labor and resource utilization and activity of the manufacturing process while managing the performance of the shop floor. v Engineering Change Control SYSPRO Engineering Change Control helps you improve the management of engineering changes to your products and/or associated data. This is achieved through user-defined workflow, steps and processes and can augment or replace the paper trail that usually accompanies any changes to product design data. The archiving facility enables retrieval and production of prior revisions / releases. Sales Orders SYSPRO Sales Orders enhances customer service through fast, efficient order processing and accurate, timely order fulfillment, while maximizing sales through instant access to information about stock availability, prices and possible substitutions. 9 SYSPRO ERP solutions for the SYSPRO ERP solutions for the 10

7 Africa and the Middle East SYSPRO (Pty) Limited Block A Sunninghill Place 9 Simba Road Sunninghill Johannesburg 2191 South Africa Tel: +27 (0) Fax: +27 (0) Asia Pacific SYSPRO Software Pty Limited Level 5, 113 Wicks Road North Ryde (Sydney) NSW 2113 Australia Tel: +61 (2) Fax: +61 (2) All enquiries: Australia: Singapore toll free: Malaysia toll free: Indonesia toll free: UK & Europe K3 Business Technology Group Baltimore House 50 Kansas Avenue Salford Quays Manchester United Kingdom M50 2GL Tel: Fax: USA & Americas SYSPRO Impact Software, Inc. 959 South Coast Drive, Suite 100 Costa Mesa, (Los Angeles region) California USA Tel: +1 (714) Fax: +1 (714) Toll free: (800) Canada SYSPRO Software Limited 4400 Dominion Street Suite 215 Burnaby (Vancouver) British Columbia Canada V5G 4G3 Tel: +1 (604) Fax: +1 (604) Copyright 2009 SYSPRO. All rights reserved. All brand and product names are trademarks or registered trademarks of their respective holders. No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording,or by any information storage or retrievel system, without prior written permission from the publisher. Notice of Liability Every effort has been made to ensure that this book contains accurate and current information. However, SYSPRO and the author shall not be liable for any loss or damage suffered by readers as a result of any information contained herein.

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